Resona Asset Management Cuts Stake in Fiserv Amid Market Changes

Resona Asset Management Co. Ltd. has reduced its position in Fiserv, Inc. by 5.8% during the third quarter of 2023, as indicated in its latest filing with the Securities and Exchange Commission. The institutional investor now holds 177,700 shares of the financial services technology provider after selling 10,908 shares during this period. The value of Resona’s holdings in Fiserv is approximately $22,956,000.

Several other institutional investors have also adjusted their stakes in Fiserv recently. Hager Investment Management Services LLC acquired a new position in the company during the second quarter, investing about $34,000. Similarly, Clear Street LLC also purchased shares valued at around $34,000 in the same quarter. In the third quarter, Sound Income Strategies LLC established a new stake worth about $28,000. Notably, True Wealth Design LLC increased its stake by an impressive 3,750.0%, now owning 231 shares valued at $30,000 after acquiring an additional 225 shares.

Institutional investors and hedge funds collectively own 90.98% of Fiserv’s stock, reflecting significant confidence in the company’s long-term prospects.

Analysts Respond to Fiserv’s Performance

Market analysts have been evaluating Fiserv’s stock performance amid these changes. BTIG Research downgraded the stock from a “buy” rating to a “neutral” rating in a report released on October 29, 2023. On the other hand, TD Cowen maintained a “hold” rating, while Morgan Stanley also adjusted its rating from “overweight” to “equal weight,” setting a price target of $81.00. B. Riley lowered its price objective from $105.00 to $76.00, maintaining a “neutral” stance on the stock.

Overall, ten analysts have rated Fiserv with a “buy” rating, while twenty-two have assigned a “hold” rating, and two have issued a “sell” rating. According to MarketBeat.com, the consensus rating for Fiserv is “hold,” with an average target price of $114.78.

Insider Activity and Stock Performance

In other developments, insider Adam L. Rosman purchased 7,900 shares of Fiserv on December 2, 2023, at an average price of $63.19 per share, totaling $499,201.00. Following this transaction, Rosman now owns 61,285 shares valued at approximately $3,872,599.15, marking a 14.80% increase in his holdings.

Additionally, Director Lance M. Fritz acquired 10,000 shares on October 30, 2023, at an average price of $65.18 per share, amounting to $651,800.00. This purchase raised Fritz’s holdings by 324.04%, bringing his total to 13,086 shares valued at around $852,945.48. Over the past 90 days, insiders have collectively purchased 34,900 shares, totaling $2,211,971. Company insiders now own 1.00% of Fiserv’s stock.

Fiserv’s shares opened at $67.56 on the latest trading day. The company’s stock has experienced a one-year low of $59.56 and a high of $238.59. Fiserv’s current market capitalization stands at $36.73 billion, with a price-to-earnings ratio of 10.44 and a PEG ratio of 3.88.

The firm recently reported its quarterly earnings results on October 29, 2023. Fiserv disclosed earnings per share (EPS) of $2.04, falling short of the consensus estimate of $2.64 by $0.60. The company’s revenue for the quarter was $4.92 billion, compared to analyst estimates of $5.37 billion. Fiserv’s net margin was 17.05%, with a return on equity of 19.47%. The year-over-year revenue growth was reported at 0.9%.

Looking ahead, Fiserv has set its fiscal year 2025 guidance at an EPS range of 8.500 to 8.600. Analysts predict an average EPS of 10.23 for the current year.

Founded in 1984 and headquartered in Brookfield, Wisconsin, Fiserv, Inc. is a leading provider of financial services technology. The company offers integrated solutions encompassing payments, processing, risk management, and compliance, serving a diverse array of clients including banks, credit unions, and retailers. Fiserv’s main offerings include account processing systems and digital banking platforms, which facilitate mobile and online banking services.